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Making Sense of AVAX Price through Elliott Wave Analysis

Long
BINANCE:AVAXUSD   AVAX / US Dollar (calculated by TradingView)
Avalanche (AVAX) has been one of the top-performing cryptocurrencies in the past 24 hours, with the price standing above the considerable psychological number of $100. Throughout this analysis, we'll show you how to apply the Elliott Wave theory to identify where we are in the overall bullish cycle.

AVAX Elliott Wave Analysis
Long-term Elliott Wave analysis suggests that AVAX price is in a bullish cycle from the September 22, 2020 low. Up from there, wave I ended with the $63.30 swing high with an internal subdivision as a 5-wave structure. Then, the price resumed lower in wave II towards the $9.25 low.

The rally in wave III ended at the current all-time high of $151.22. We're currently resuming lower in wave IV, which has a high chance of being completed at the $72.0 swing low.

Usually, there is an alternation between wave II and wave IV in Elliott Wave analysis. If wave II is an extended consolidation, then wave IV is a sharp correction, which is the case for the AVAX's price. Short-term, as far as AVAX's price remains above the $72 low, we can expect another rally in wave V to complete the five Elliot Wave sequences.

We can already see the return of the bullish momentum on the RSI oscillator as the RSI already broke above the mid-level 50.

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